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Multistate Tax alert archive

State tax legislative, judicial, and administrative developments

​The Multistate Tax alert archive includes external tax alerts issued by Deloitte Tax LLP's Multistate Tax practice during the last three years. These external alerts highlight selected developments involving state tax legislative, judicial, and administrative matters. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons.

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Most recent Multistate tax alert

Texas Supreme Court: Net loss not included in apportionment factor denominator

On April 15, 2016, in Hallmark Marketing Company, LLC, v. Hegar, the Texas Supreme Court reversed a Texas Court of Appeals’ decision and held that the Texas Tax Code does not require taxpayers to include a net loss from the sale of investments and capital assets in its apportionment factor denominator for Texas franchise tax purposes. The Texas Supreme Court remanded the case back to the trial court for further proceedings consistent with its decision.

The case involved the application of Texas Tax Code (TTC) § 171.105(b), which for purposes of determining the denominator of the franchise tax apportionment factor states: “If a taxable entity sells an investment or capital asset, the taxable entity’s gross receipts from its entire business for taxable margin include only the net gain from the sale” (emphasis added). The taxpayer argued the proper interpretation of this statute was that gains only are included and, thus, losses are disregarded. 

The Texas Comptroller has 15 days from the date when the Supreme Court renders judgement to submit a motion for rehearing to the Supreme Court clerk.

In this tax alert we summarize the proceedings and arguments in this case and provide some taxpayer considerations.

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2015 Multistate Tax alerts

Find out what you missed in 2015. Explore our archive.

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2014 Multistate Tax alerts

Find out what you missed in 2014. Explore our archive.

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2013 Multistate Tax alerts

Key updates in 2013. Explore our archive.

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